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Fundamentals

What is Stablecoins?

Reviewed by the ONCHAIN TRADE DOJO team · Updated March 12, 2026

Cryptocurrencies designed to maintain a stable value, usually pegged 1:1 to USD (USDT, USDC, DAI).

Example

You sell Bitcoin in a downtrend and park the proceeds in USDT — a stablecoin pegged 1:1 to the US dollar. That keeps you in crypto without exposure to volatility, and you can re-enter quickly at any time. Stablecoins are the bridge between crypto and fiat. Backing matters: USDC and USDT are covered by reserves, whereas algorithmic stablecoins (like UST once was) can collapse.

Related terms

What is Stablecoins? Definition & example | ONCHAIN TRADE DOJO